Swedish furniture brand IKEA has created a peer-to-peer resale platform called IKEA Preowned as part of its aim to become a circular business by 2030.
The secondhand marketplace, which allows people to buy and sell preloved IKEA products, is being trialled in Madrid and Oslo until the end of the year. A global rollout is set to follow if the platform proves successful.
The marketplace allows sellers to list their preloved furniture and homeware by uploading photos and setting a price. IKEA would then use AI to pull in the correct measurements for the piece from its own database, alongside any supporting images from its back catalogue, the company said.
Buyers can pick up their purchase directly from the seller, who has the choice of being paid directly or receiving an IKEA voucher with 15% additional credit. The aim is to rival online resale platforms like eBay, Gumtree and Facebook Marketplace, where IKEA products already make up a significant part of the inventory, according to Tolga Öncü, retail operations manager for IKEA franchisee Ingka Group.
Already today, 10% of the second-hand home furnishing market is made up by IKEA products. With the platform that is being tested in Madrid and Oslo, IKEA have the possibilities to simplify and enhance the experience for both the seller and the buyer.
As part of the goal to ensure all IKEA products can be reused, refurbished or "as a last resort" recycled by 2030, the marketplace also features a "care and repair" section that allows people to order spare parts, removable covers and wood stains to refresh their furniture.
IKEA Preowned currently allows users to buy and sell products for free although eventually, the company could charge "a humble fee", Inka Group CEO Jesper Brodin told the Financial Times. IKEA is assessing questions like this and other business implications as part of the ongoing trial, as well as checking in with users to understand how the platform is working for them.
IKEA Preowned expands on the company's existing buy-back programme, which sees the company resell customers' preloved furniture in-store. The preloved marketplace is also "one of the most important parts" of IKEA's aim to become "the go-to place for home furnishing" online.
This pivot has seen the company close a number of its large, out-of-town stores in recent years. Instead, IKEA is complementing its growing online offering with smaller shops in city centres, including a car-free store in Vienna, a Copenhagen store with a rooftop park and an upcoming outlet at London's Oxford Street.